Section 8 company is a concept that combines the pro of a NGO and a Corporate. It provides an other to the promoters to momentum the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits over the mature which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Bariyatu which are practicing in various fields for the welfare of public at large. Our raptness service includes Name Selection, Memorandum Drafting and Company Registration. We come going on with the keep for our clients best in class services thus that they are not frightened with any non assent during the initial stages of there growth. In Bariyatu we take a maximum of 10 days times to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally publish of a company ends bearing in mind word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies dynamic in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there name not terminate with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there make known may stop with words taking into consideration Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An government which on the other hand of distributing its surplus/profit in the course of its members, applies the similar in the fulfilment of its objects. That is they are not allowed to distribute any keep in the form of dividend or gain sharing. Company registered under Section 8 is a Non Profit Organization
Is Section 8 company Public company or Private Company?
Section 8 Company can be incorporated both as a public as skillfully as private company.
- A minimum of 2 members are required if the company is incorporated under the definition of private company and a minimum of 7 members shall be required if the company is incorporated under the definition of public company.
- An OPC (One Person Company) cannot apply for License under Section 8
DONATION:
A company incorporated under Section 8 can take donations from public subject to applicability of other rules and regulations and official approval form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also mount up members and take membership early payment from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like supplementary NGO can apply for 12A and 80G registration later Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company below the definition of Public or Private company can apply for license under Section 8, and the Ministry of Corporate Affairs can after due upholding of documents and keeping in view everything the formalities, issue license under section 8 of the Act.
Likewise a company registered under Section 8 can convert itself into Public or private Company.